Categories
Archives
News Home > > News Detail
Surveys and reports been offering mixed signals regarding the economic recovery. For example, this month's Discover Small Business Watch claims that small business owners are still skeptical in regards to the future, while other reports indicate that lending to this sector is on the mend and hiring has increased.
So, how can entrepreneurs determine whether the forecast really is better, particularly if they are considering incorporating a business? According to Entrepreneur magazine, they should pay attention to the number of bankruptcy protection filings. The source reported that last month, the number of Equifax business filings dropped by 18 percent nationally in the last quarter of 2010. In addition, 10 of the top 15 metropolitan regions that claimed the largest number of small business bankruptcy filings in the same time period the year before saw drops this time around.
"The deeper question behind these numbers is why the bankruptcy rate is improving," Carol Tice wrote for the source.
"Is it simply that so many floundering companies have already thrown in the towel that now there are fewer left teetering? … Maybe the scads of new businesses started in the past couple years by the unemployed simply haven't exhausted their owners' funds yet and closed their doors. We could just be in a brief lull - and may not see any movement unless real-estate foreclosures spike later this year or if interest rates rise," she added.
This article is brought to you by Vcorp Services – Vcorp offers executives, attorneys, accountants, and entrepreneurs an extensive suite of services including entity formations, state filings, document retrieval, tax-exempt filings, UCC filings and searches, 501c3 filings and more. www.vcorpservices.com
So, how can entrepreneurs determine whether the forecast really is better, particularly if they are considering incorporating a business? According to Entrepreneur magazine, they should pay attention to the number of bankruptcy protection filings. The source reported that last month, the number of Equifax business filings dropped by 18 percent nationally in the last quarter of 2010. In addition, 10 of the top 15 metropolitan regions that claimed the largest number of small business bankruptcy filings in the same time period the year before saw drops this time around.
"The deeper question behind these numbers is why the bankruptcy rate is improving," Carol Tice wrote for the source.
"Is it simply that so many floundering companies have already thrown in the towel that now there are fewer left teetering? … Maybe the scads of new businesses started in the past couple years by the unemployed simply haven't exhausted their owners' funds yet and closed their doors. We could just be in a brief lull - and may not see any movement unless real-estate foreclosures spike later this year or if interest rates rise," she added.
This article is brought to you by Vcorp Services – Vcorp offers executives, attorneys, accountants, and entrepreneurs an extensive suite of services including entity formations, state filings, document retrieval, tax-exempt filings, UCC filings and searches, 501c3 filings and more. www.vcorpservices.com
About Vcorp Services LLC
Vcorp Services assists in the creation of new businesses and helps maintain existing businesses in
all 50 states. Quick, accurate and at the lowest rates, Vcorp's knowledgeable and experienced staff
has helped form thousands of new businesses including: LLCs, S-Corporations, C-Corporations,
Partnerships, Non-Profits and Professional Corporations. Vcorp works with entrepreneurs, legal and
tax professionals, as well as real estate experts to set up and maintain businesses across the
country. Vcorp also specializes in helping small businesses to get started, grow and remain in
compliance with federal and state regulations.